Hims & Hers Health, Inc. (NYSE:HIMS) Targets European Expansion with ZAVA Acquisition

• Ryan Macdonald from Needham sets a price target of $65 for NYSE:HIMS, indicating a potential upside of 21.25%.
• The acquisition of ZAVA is expected to expand Hims & Hers' market opportunity by $52 billion.
• HIMS stock experiences a 5.8% increase in premarket trading following the acquisition announcement.

Hims & Hers Health, Inc. (NYSE:HIMS) is a leading telehealth company that offers a wide range of health and wellness services. The company specializes in providing personalized healthcare solutions in areas such as dermatology, weight loss, sexual health, and mental health. Competing with other telehealth giants like Teladoc Health and Amwell, Hims & Hers is keen on expanding its market presence both in the U.S. and internationally.

On June 4, 2025, Ryan Macdonald from Needham set a price target of $65 for NYSE:HIMS, suggesting a potential upside of 21.25% from its current trading price of $53.61. This optimistic outlook is largely due to Hims & Hers' strategic acquisition of ZAVA, a European digital health platform. The acquisition, which is funded entirely in cash, is expected to close in the latter half of 2025, potentially expanding the company's market opportunity by $52 billion.

The acquisition of ZAVA will significantly enhance Hims & Hers' presence in the U.K. and facilitate its entry into Germany, France, and Ireland. ZAVA, which currently serves over 1.3 million active customers and conducted nearly 2.3 million consultations in 2024, will bolster Hims & Hers' international footprint, allowing the company to offer tailored healthcare services across Europe.

Despite the promising expansion, NYSE:HIMS stock has experienced a decline, currently priced at $53.61, reflecting a decrease of 2.05% or $1.12. The stock has fluctuated between a low of $52.80 and a high of $59.29 during the day. Over the past year, it reached a high of $72.98 and a low of $13.47, with a market capitalization of approximately $11.55 billion.

Following the acquisition announcement, NYSE:HIMS stock saw a 5.8% increase in premarket trading, indicating investor optimism. The deal is projected to be accretive by 2026, enhancing Hims & Hers' footprint in Europe and introducing a new, personalized dimension of digital health. The company plans to leverage the ZAVA platform to establish its own branded presence in these markets.